Hello there ,
i just going to join a new company , as per discussion with then they told me that i am getting 25k,.
but when i received offer letter from them , things are different and not able to get they are paying me in hand and what are risk in that .
I had attached image file of an Salary Structure i had received from them side .
Please do let me know what would be amount i may getting in hand with all deduction.
Thanks
From India, Mumbai
i just going to join a new company , as per discussion with then they told me that i am getting 25k,.
but when i received offer letter from them , things are different and not able to get they are paying me in hand and what are risk in that .
I had attached image file of an Salary Structure i had received from them side .
Please do let me know what would be amount i may getting in hand with all deduction.
Thanks
From India, Mumbai
Hi,
1. This CTC break up is totally wrong, Some of the things i found
1. HRA Should be 40 or 50% on basic as per act.
2. PF calculation is totally wrong you just ask them( PF contribution is on Basic,Employee-12%,Employer12%)
3. As per CTC given to you, you are not eligible for ESI benefit, because your gross is more than 15000/-
4. IF i will consider this CTC,then your In hand salary will be- 20905/-
Deductions
PF/ESI
Bonus you will receive yearly once.
Gratuity- Eligible for Gratuity 5 years continue service.
please clarify this terms with HR.
From India, Mumbai
4271. This CTC break up is totally wrong, Some of the things i found
1. HRA Should be 40 or 50% on basic as per act.
2. PF calculation is totally wrong you just ask them( PF contribution is on Basic,Employee-12%,Employer12%)
3. As per CTC given to you, you are not eligible for ESI benefit, because your gross is more than 15000/-
4. IF i will consider this CTC,then your In hand salary will be- 20905/-
Deductions
PF/ESI
Bonus you will receive yearly once.
Gratuity- Eligible for Gratuity 5 years continue service.
please clarify this terms with HR.
From India, Mumbai
THE CTC BREAK UP IS WRONG AND COMPONENTS WHICH ARE INCLUDED IN CTC ALSO WRONG...
ITS NOT ETHICAL PRACTICE AND NOT GENUINE CTC...TO ATTRACT EMPLOYEES SOME COMPANIES PLAYS THESE KIND OF TRICKS.
AS PER YOU CTC STRUCTURE I AM PROVIDING THE FOLLOWING INFORMATION.
Monthly Annual
BASIC 6250 75000
HRA 5000 60000
Conveyance 3125 37500
Child Education 1095 13140
Special Allowance 655 7860
Other Allowances 2500 30000
EPF/ESI 1095 13140
Bonus 1750 21000
Gratuity 3375 40500
Your Gross Salary 18625
Your Take Home After Deductions
Only PF 12% on Basic 750
Your Salary 17875
Professional Tax Deduction 200
Your Take Home Salary 17675
Your Gross Salary is More than 15000 so you are not eligible for ESI
PT Differs From State to State
Your CTC is 25000 per month But they are included Gratuity,Bonus,etc....But that amount you will not get every month.
From India, Hyderabad
ITS NOT ETHICAL PRACTICE AND NOT GENUINE CTC...TO ATTRACT EMPLOYEES SOME COMPANIES PLAYS THESE KIND OF TRICKS.
AS PER YOU CTC STRUCTURE I AM PROVIDING THE FOLLOWING INFORMATION.
Monthly Annual
BASIC 6250 75000
HRA 5000 60000
Conveyance 3125 37500
Child Education 1095 13140
Special Allowance 655 7860
Other Allowances 2500 30000
EPF/ESI 1095 13140
Bonus 1750 21000
Gratuity 3375 40500
Your Gross Salary 18625
Your Take Home After Deductions
Only PF 12% on Basic 750
Your Salary 17875
Professional Tax Deduction 200
Your Take Home Salary 17675
Your Gross Salary is More than 15000 so you are not eligible for ESI
PT Differs From State to State
Your CTC is 25000 per month But they are included Gratuity,Bonus,etc....But that amount you will not get every month.
From India, Hyderabad
I appreciate mr pradeep’s detailed answer. However I feel that for calculation purposes, bonus and gratuity components also need to be taken into account aa they are deferred payments. Regards
From India, Thane
From India, Thane
Hi
Sorry Mr.Pardeep But you have taken the wrong figures in your calculation
Monthly Annual(Mr.Pardeep) New Calculation
BASIC 6250 75000 6250 75000
HRA 5000 60000 5000 60000
Conveyance 3125 37500 3125 37500
Child Education 1095 13140 655 7860
Special Allowance 655 7860 2500 30000
Other Allowances 2500 30000 3375 40500
Total 18625 20905
20905 is your cash in hand
750 (LESS PF DED)
20155 (NET TAKE HOME SALARY)
From India, Delhi
Sorry Mr.Pardeep But you have taken the wrong figures in your calculation
Monthly Annual(Mr.Pardeep) New Calculation
BASIC 6250 75000 6250 75000
HRA 5000 60000 5000 60000
Conveyance 3125 37500 3125 37500
Child Education 1095 13140 655 7860
Special Allowance 655 7860 2500 30000
Other Allowances 2500 30000 3375 40500
Total 18625 20905
20905 is your cash in hand
750 (LESS PF DED)
20155 (NET TAKE HOME SALARY)
From India, Delhi
Hi,
Can anyone Please explain If employer included gratuity and EPF(employer and employee both part) as a part of Gross salary of employee as in this case,than in hand salary will be affected or not ,(if we are talking about per month) salary .
Regards
Ruchi
From India, Delhi
Can anyone Please explain If employer included gratuity and EPF(employer and employee both part) as a part of Gross salary of employee as in this case,than in hand salary will be affected or not ,(if we are talking about per month) salary .
Regards
Ruchi
From India, Delhi
I appreciate your reply,
I have one more doubt, I request seniors to clarify .
If Gratuity and employer EPF is part of Gross salary than in while Calculating salary ,explained above by Mr. Pradeep and others must take care of these factor(i.e., EPF and Grautity).
Kindly update me with salary calculation having share of Gratuity and Employer EPF.
Thanks
Ruchi
From India, Delhi
I have one more doubt, I request seniors to clarify .
If Gratuity and employer EPF is part of Gross salary than in while Calculating salary ,explained above by Mr. Pradeep and others must take care of these factor(i.e., EPF and Grautity).
Kindly update me with salary calculation having share of Gratuity and Employer EPF.
Thanks
Ruchi
From India, Delhi
Aditya You said that HRA should be 40 or 50% of basic as per the Act.Which Act says so? Varghese Mathew
From India, Thiruvananthapuram
From India, Thiruvananthapuram
Dear Varghese Mathew HRA depends on Income Tax Law. Employees generally receive a house rent allowance (HRA) from their employers. This is a part of the salary package, in accordance with the terms and conditions of employment. HRA is given to meet the cost of a rented house taken by the employee for his stay. The Income Tax Act allows for deduction in respect of the HRA paid to employees. The exemption on HRA is covered under Section 10(13A) of the Income Tax Act and Rule 2A of the Income Tax Rules. It is to be noted that the entire HRA is not deductible. HRA is an allowance and is subject to income tax.
An employee can claim exemption on his HRA under the Income Tax Act if he stays in a rented house and is in receipt of HRA from his employer. In order to claim the deduction, an employee must actually pay rent for the house which he occupies.
The rented premises must not be owned by him. In case one stays in an own house, nothing is deductible and the entire amount of HRA received is subject to tax. As long as the rented house is not owned by the assessee, the exemption of HRA will be available up to the the minimum of the following three options:
1. Actual house rent allowance received from your employer
2. Actual house rent paid by you minus 10% of your basic salary
3. 50% of your basic salary if you live in a metro or 40% of your basic salary if you live in a non-metro
This minimum of above is allowed as income tax exemption on house rent allowance.
Salary here means basic salary which includes dearness allowance if the terms of employment provide for it, and commission based on a fixed percentage of turnover achieved by the employee. The deduction will be available only for the period during which the rented house is occupied by the employee and not for any period after that.
Meaning of Salary for calculation the exemption of HRA
• Salary means (Basic + D.A + Commission based on fixed percentage on turnover).
• Salary is to be taken on due basis in respect of the period during which the period accommodation is occupied by the employee in the previous year.
Examples for calculation of exemption/deduction of HRA
X has received following amount during the previous year.
1. Basic Salary – Rs. (5000*12) – Rs. 60,000/-
2. Dearness Allowance (D.A) – Rs. (1000*12) – Rs. 12000/-
3. House Rent Allowance (H.R.A.) – Rs. (2000*12) – Rs. 24000/-
4. Actual Rent Paid – Rs.(2000*12) – Rs. 24000/-
Calculation
The minimum of the following amount shall be exempt
• Actual HRA received (2000*12) – Rs. 24000/-
• Rent Paid in excess of 10% of salary ( 24000-7200) – Rs. 16800
• 40% of Salary – Rs. 28800/-
Therefore, Rs. 16800 shall be exempt and the balance Rs. 7200 shall be included in gross salary.
(Pradeep Sahukari)
From India, Hyderabad
An employee can claim exemption on his HRA under the Income Tax Act if he stays in a rented house and is in receipt of HRA from his employer. In order to claim the deduction, an employee must actually pay rent for the house which he occupies.
The rented premises must not be owned by him. In case one stays in an own house, nothing is deductible and the entire amount of HRA received is subject to tax. As long as the rented house is not owned by the assessee, the exemption of HRA will be available up to the the minimum of the following three options:
1. Actual house rent allowance received from your employer
2. Actual house rent paid by you minus 10% of your basic salary
3. 50% of your basic salary if you live in a metro or 40% of your basic salary if you live in a non-metro
This minimum of above is allowed as income tax exemption on house rent allowance.
Salary here means basic salary which includes dearness allowance if the terms of employment provide for it, and commission based on a fixed percentage of turnover achieved by the employee. The deduction will be available only for the period during which the rented house is occupied by the employee and not for any period after that.
Meaning of Salary for calculation the exemption of HRA
• Salary means (Basic + D.A + Commission based on fixed percentage on turnover).
• Salary is to be taken on due basis in respect of the period during which the period accommodation is occupied by the employee in the previous year.
Examples for calculation of exemption/deduction of HRA
X has received following amount during the previous year.
1. Basic Salary – Rs. (5000*12) – Rs. 60,000/-
2. Dearness Allowance (D.A) – Rs. (1000*12) – Rs. 12000/-
3. House Rent Allowance (H.R.A.) – Rs. (2000*12) – Rs. 24000/-
4. Actual Rent Paid – Rs.(2000*12) – Rs. 24000/-
Calculation
The minimum of the following amount shall be exempt
• Actual HRA received (2000*12) – Rs. 24000/-
• Rent Paid in excess of 10% of salary ( 24000-7200) – Rs. 16800
• 40% of Salary – Rs. 28800/-
Therefore, Rs. 16800 shall be exempt and the balance Rs. 7200 shall be included in gross salary.
(Pradeep Sahukari)
From India, Hyderabad
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SALARY SHEET CALCULATION.xls
Salary calculation.doc